Tesla Update v7.0 Enables Self-driving Test In China (Photo : Getty Images)
In December 2015, Tesla CEO Elon Musk said that his company would be ready to bring to the market self-driving cars.
To help make that a reality, Tesla signed a non-binding memorandum of understanding (MOU) with the Jinqiao Group, a government-owned company in Shanghai, for the carmaker to build a $9-billion production plant at its facilities, reported Bloomberg, citing a person privy to the negotiations.
Under the MOU, land may be the share, worth $4.5 billion, of Jinqiao. If the plan would push through, the planned facility would be larger than the recently opened $5.5-billion Shanghai Disneyland. Besides Shanghai, other cities in China that Tesla is looking into to build its high-tech vehicles are Suzhou and Hefei.
Musk said in December that Tesla would pick a site for a production plan in China by mid-2016. By manufacturing its electric vehicles in China, Tesla, based in Palo Alto, California, would also avoid the 25 percent import tax it pays the Chinese government, noted Mashable.
Bloomberg Intelligence auto analyst Steve Man said if the investment would push through, it would be a major win for both Shanghai and Tesla. He added the investment would likely include a nationwide dealership network, superchargers, research and development center and a second Gigafactory.
News of the MOU signing caused a jump in the share prices of Jinqiao Export Processing beyond the 10 percent limit that the regulator had to suspend trading of the stock. In the U.S., Tesla shared closed at $219.70, or 2 percent higher, on Monday.
